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HB 1199 repeal the lottery and certain gambling in South Dakota.
State of South Dakota  
NINETY-SECOND SESSION
LEGISLATIVE ASSEMBLY, 2017  

664Y0615   HOUSE BILL   NO.  1199  

Introduced by:    Representative Haugaard
 

        FOR AN ACT ENTITLED, An Act to repeal the lottery and certain gambling in South Dakota.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
    Section 1. That § 42-7A-1 be repealed.
    42-7A-1. Terms used in this chapter mean:
            (1)    "Associated equipment," any proprietary device, machine, or part used in the manufacture or maintenance of a video lottery machine, including integrated circuit chips, printed wired assembly, printed wired boards, printing mechanisms, video display monitors, and metering devices;
            (2)    "Commission," the South Dakota Lottery Commission;
            (3)    "Credit," one, five, ten, or twenty-five cents;
            (4)    "Executive director," the executive director of the South Dakota Lottery;
            (5)    "Instant lottery," a game that offers preprinted tickets that indicate immediately or in a grand prize drawing whether the player has won a prize;
            (6)    "Licensed establishment," a bar or lounge owned or managed by an individual, partnership, corporation, or association licensed to sell alcoholic beverages for

consumption upon the premises where sold;

            (7)    "Lottery" or "state lottery," any lottery operated pursuant to this chapter;
            (8)    "Lottery retailer," any person with whom the South Dakota Lottery has contracted to sell lottery tickets to the public;
            (9)    "Lottery vendor" or "vendor," any person who has entered into a major procurement contract with the South Dakota Lottery;
            (10)    "Major procurement," any contract with any vendor directly involved in providing facilities, equipment, tickets, and services unique to the lottery, but not including materials, supplies, equipment, and services common to the ordinary operations of state agencies;
            (11)    "Net machine income," money put into a video lottery machine minus credits paid out in cash;
            (12)    "On-line lottery," a game linked to a central computer via a telecommunications network in which the player selects a specified group of numbers or symbols out of a predetermined range of numbers or symbols as approved by the commission;
            (13)    "South Dakota Lottery," the state agency created by this chapter to operate a lottery pursuant to this chapter;
            (14)    "Ticket," any tangible evidence issued or authorized by the South Dakota Lottery to prove participation in an instant, on-line, or video lottery game;
            (14A)    "Video lottery," any video game of chance played on video lottery machines;
            (15)    "Video lottery machine distributor," any individual, entity, partnership, corporation, or association that distributes or sells video lottery machines or associated equipment in this state;
            (16)    "Video lottery machine manufacturer," any individual, entity, partnership,

corporation, or association that assembles or produces video lottery machines or associated equipment for sale or use in this state;

            (17)    "Video lottery machine operator," any individual, entity, partnership, corporation, or association that places video lottery machines or associated equipment for public use in this state; and
            (18)    "Video lottery machines," or "machine," any electronic video game machine that, upon insertion of cash, is available to play or simulate the play of a video game, including video poker, keno, and blackjack, authorized by the commission utilizing a video display and microprocessors in which, by chance, the player may receive free games or credits that can be redeemed for cash. The term does not include a machine that directly dispenses coins, cash, or tokens.
    Section 2. That § 42-7A-2 be repealed.
    42-7A-2. There is hereby established in the Department of Revenue a division to be called the South Dakota Lottery under the direction of the South Dakota Lottery Commission. Under the supervision of the commission, an executive director shall administer the state lottery as provided in this chapter. In all decisions, the executive director and commission shall take into account the particularly sensitive nature of the lottery, and shall act to promote and ensure the integrity, security, honesty, and fairness of its operation and administration. The overall management of the state lottery and control over the operation of its games shall rest solely with the South Dakota Lottery.
    Section 3. That § 42-7A-3 be repealed.
    42-7A-3. The executive director shall be the secretary of revenue or his designee. The executive director shall be exempt from the South Dakota Career Service Act and shall receive an annual salary fixed by the Governor. The executive director may employ such persons as may

be necessary to operate the South Dakota Lottery.
    Section 4. That § 42-7A-4 to 42-7A-65, inclusive, be repealed.
    Section 5. That § 22-25-25 to 22-25-52, inclusive, be repealed.